Intent of the Home Equity Assistance (SCONDVA Report)

1. In subject Standing Committee, the need to assist relocating military members ìIf real
estate values in their region are on a downward trend when a posting comes, they may have to
sell their homes at a lossî. The Home Equity Assistance Plan was implemented as a result. The
SCONDVA studies made several conclusions that are extremely relevant to this application:

a. ìMost public servants do not have to move and deal with the vagaries of the real
estate markets as often as military personnel do, so the special requirements of
the latter must be taken into considerationî;

b. ìIt should be sufficient to demonstrate that the local real estate market is
depressed rather than trying to determine as well if the price of homes has
dropped by 10% or notî;

c. ìMilitary personnel who own their homes instead of renting accommodations on
or off military bases also face many problems. Like other Canadian homeowners,
they have to deal with the needs of growing families, the long-term financial
implications of ownership, and the complexities of the real estate market.
However, unlike most Canadians, they also have to move more frequently, have
to sell and buy homes more often, and, not by choice, have to contend with
significant differences in housing prices from one region to another. If real estate
values in their region are on a downward trend when a posting comes, they may
have to sell their homes at a loss. If they move to an area where homes are much
more expensive, they may only be able to afford less expensive and smaller
homes than the one sold at the previous location. Some may even abandon their
dream of homeownership because they lost too much money on the sale of their
home at the old location.î

d. ìThe quality of life of individuals is improved because homeownership remains a
viable option to them despite their frequent moves and because with good
financial planning, they will own a home when they retire from the military.
Some measures are already in place to help homeowners and some improvements
can help make them more effective.î
e. ìThe Home Equity Assistance Program (HEAP) was established to help
homeowners who have to leave an area when the real estate market is depressed.
Ö. To be eligible, homeowners have to demonstrate that the home prices in the
area have declined by 10% or more between the time of purchase and the time of
sale. This is not always easy to do because of conflicting information and other
factors. Delays in determining eligibility for assistance has also been a problem
and revised application procedures were introduced in 1996 to deal with this.
However, given the number of complaints we heard, the way eligibility is
determined still creates problems.î

f. ìSome people suffered significant financial losses when they sold their homes in
a depressed real estate market, but could not get assistance because the price of
houses in their area dropped by only 8 or 9% or because of the way the adjusted
purchase price was determined. Losing assistance because of one or two
percentages is of course disappointing, but it is even more difficult to accept if
people do not have confidence that their eligibility is determined fairly. Some
questions were raised about the way appraisals are carried out to determine the
adjusted purchase price. Two appraisals of a home are usually carried out, but the
Department sometimes orders a third appraisal when there is a significant
difference in the first two. While the way appraisals are carried out should be
reviewed, other factors in determining eligibility also need attention.î

g. ìIt should be sufficient to demonstrate that the local real estate market is
depressed rather than trying to determine as well if the price of homes has
dropped by 10% or not. In short, procedures should be simplified and the 10%
rule should be abandoned. We therefore recommend: 36. That the Home Equity
Assistance Program be revised, notably by eliminating the 10% rule, to ensure
that homeowners have access to fair and equitable assistance when, because of a
new posting, they have to sell their home while the local real estate market is
depressed.î

HEA Timeline Presentation
This presentation is made to assist with the sharing of information on the systemic denial of Home Equity Assistance by Treasury Board Secretariat

Access to Information Requests

A201000410
Correspondence sent by R. Singh regarding the Integrated Relocation Program and all correspondence between R. Singh and his superior officers, his deputy minister and others for the period of June 1, 2008 to October 29, 2010.

A201101059
All documents relating to the Litigation Management Unit that have been received or sent by Michelle d’Auray, Daphne Meredith, Andrew Saxton or Tony Clement from June 1, 2011 to March 15, 2012.

A-2010-01371
Original and complete text used by CDS to render his decision on Grievance Case Summary 2010-043 dated 16 Sept 2010.

A201100175
Background briefing notes prepared by the Treasury Board Secretariat for the new President, the Honorable Tony Clement.

A201000690
Copy of the current contract for relocation services between the Royal Canadian Mounted Police, Brookfield Global Relocation Services and Treasury Board Secretariat.

A-2010-00699
Communications from TBS re: applications for Home Equity Assistance in a depressed market (2007-2010). Number of CF members who have applied for + granted 100% HEA during this time. Any policy clarification or research studies on depressed markets.

A201000469
Copy of the following documents: the Crown Liability and Proceedings Act; Debt Write Off Regulations; Treasury Board Policy on Claims and Ex-Gratia payments; and the Treasury Board Risk Management Policy.

A201000295
Copies of 47 briefing notes on various issues sent to the President of the Treasury Board.

ATI A-2012-00942
All memos, reports, emails, briefing notes, minutes of meetings held within DND and any letters to or from TBS between 1 Jan 09-5 Aug 12 on the subject of 100% HEA, depressed markets or policy…

Relocation funds reported to be shifted to Mental Health
additional funds for mental health were transferred from the military relocation envelope shows the government is making up a “patchwork” strategy on the fly, he said, calling MacKay’s announcement “pre-emptive damage control.”

Definition of Community
The following is a description of one of the communities in question (Bon Accord, Alberta) which is, in accordance with Federal, legal and logical definitions, a community as required in the CFIRP HEA policy. This information was provided to TBS as part o

Donations
Although we won in Federal Court, the Treasury Board continues to deny payment. Please support our second attempt at justice.

Legislation

Bill C-15
Strengthening Military Justice in the Defence of Canada Act-An Act to amend the National Defence Act and to make consequential amendments to other Acts

PC Number: 2012-0861
PC Number: 2012-0861: His Excellency the Governor General in Council, on the recommendation of the Treasury Board and the Minister of National Defence, makes the annexed Canadian Forces Grievance Process Ex Gratia Payments Order.

Lamer Report
The First Independent Review by the Right Honourable Antonio Lamer P.C., C.C., C.D. of the provisions and operation of Bill C-25, An Act to amend the National Defence Act. “Those responsible for organizing and administrating Canada’s military justice sy

Constitution Act
Constitution Act: Legal Rights Marginal note:Life, liberty and security of person 7. Everyone has the right to life, liberty and security of the person and the right not to be deprived thereof except in accordance with the principles of fundamental justic

It's Your Move (Brookfield Global Relocation Services) 2010-11
These exerpts show the definition of community as communicated to the Canadian Forces, and to the Third Party Contractors (i.e. realtors who conduct the depressed market ananlysis of the community. Surely, this substantiates the term community as a town.

PERSPECTIVES from the Canadian Forces Grievance Board-May 2011
This decision is said to be based on an email notification provided by a staff officer at TB in May 2009 to the effect that there are no “depressed markets” in Canada. It was later explained to the Board that the matter had not been pursued “given o

Canadian Forces Grievance Board 2012 Annual Report
The Board firmly believes that something must be done to assist Canadian Forces members who have been affected by the Home Equity Assistance policy. The Board has suggested to the Chief of the Defence Staff that this significant issue requires a considere

Case # 2012-140
the CDS agreed with the Board that the situation incurred by CF members with the application of the current Home Equity Assistance (HEA) policy is egregious. Therefore, the CDS confirmed the Board’s systemic recommendation submitted in previous files o